Press Release: Arqit Quantum Inc. Announces Financial and Operational Results for the Fiscal Year 2024

Dow Jones12-05

Arqit presents adjusted loss before tax, which is a financial measure not calculated in accordance with IFRS. Although Arqit's management uses this measure as an aid in monitoring Arqit's on-going financial performance, investors should consider adjusted loss before tax in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with IFRS. Adjusted loss before tax is defined as loss before tax excluding change in fair value of warrants, which is non-cash. There are limitations associated with the use of non-IFRS financial measures, including that such measures may not be comparable to similarly titled measures used by other companies due to potential differences among calculation methodologies. There can be no assurance whether (i) items excluded from the non-IFRS financial measures will occur in the future, or (ii) there will be cash costs associated with items excluded from the non-IFRS financial measures. Arqit compensates for these limitations by using adjusted loss before tax as a supplement to IFRS loss before tax and by providing the reconciliation for adjusted loss before tax to IFRS loss before tax, as the most comparable IFRS financial measure.

IFRS and Non-IFRS loss before tax

Arqit presents its consolidated statement of comprehensive income according to IFRS and in line with SEC guidance. Consequently, the changes in warrant values are included within that statement in arriving at loss before tax. The changes in warrant values are non-cash. After this adjustment is made to Arqit's IFRS loss before tax of $23.9 million, Arqit's non-IFRS adjusted loss before tax is $23.9 million, as shown in the reconciliation table below.

 
                                               Year end 30     Year end 30 
                                                Sept. 2024      Sept. 2023 
                                                  $'000           $'000 
Loss)/profit before tax from continuing 
 operations on an IFRS basis                   $   (23,977)   $   (44,113) 
--------------------------------------------      --------       -------- 
Change in fair value of warrants                       $(6)      $(10,638) 
--------------------------------------------  ------------       -------- 
Adjusted loss before tax                       $   (23,983)   $   (54,751) 
--------------------------------------------      --------       -------- 
 

The change in fair value of warrants arises as IFRS requires our outstanding warrants to be carried at fair value within liabilities with the change in value from one reporting date to the next being reflected against profit or loss in the period. It is non-cash and will cease when the warrants are exercised, are redeemed, or expire.

Other Accounting Information

As of 30 September 2024, we had $14.9 million of total liabilities, of which none was related to our outstanding warrants, which are classified as liabilities rather than equity according to IFRS and SEC guidance, the warrant liability is calculated as the fair value of the warrants as of 30 September 2024. We had total assets of $26.7 million including cash of $18.7 million.

(END) Dow Jones Newswires

December 05, 2024 08:00 ET (13:00 GMT)

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